Prosecutors Begin Investigation of Former Ssangbangwool Chairman Kim Seong-tae... Arrest Warrant Expected Tomorrow

[Asia Economy Reporter Kim Hyung-min] On the morning of the 17th, the prosecution began investigating Kim Seong-tae, former chairman of Ssangbangwool, who arrived through Incheon Airport.

Former Chairman Kim boarded a prosecution escort vehicle around 10:45 a.m. and entered the underground parking lot of the Suwon District Prosecutors' Office building in Yeongtong-gu, Suwon-si, Gyeonggi-do.

He was apprehended in Thailand on the 10th after fleeing abroad for eight months and arrived at Incheon Airport at 8:24 a.m. that day. Kim was immediately transferred to the prosecution and is currently undergoing interrogation as a suspect in the 15th-floor investigation room of the Suwon District Prosecutors' Office Criminal Division 6 (Chief Prosecutor Kim Young-nam).

Former Chairman Kim Seong-tae of Ssangbangwool Group, who was caught in Thailand while on the run abroad, is returning to Korea through Incheon International Airport Terminal 1 on the 17th. Photo by Kang Jin-hyung aymsdream@

Upon arrival, he told reporters, "I will sincerely cooperate with the investigation," and expressed, "It pains me that the hardworking employees of the company are hurt because of me." When asked about the allegations of Lee Jae-myung, leader of the Democratic Party of Korea, regarding the payment of legal fees, he replied, "I have no knowledge of that." He added, "I apologize for causing concern to the public because of me," and said, "Everything will be revealed by the prosecution."

Former Chairman Kim is expected to undergo a rigorous investigation. After the investigation, the prosecution is likely to request an arrest warrant, probably by the morning of the 18th. Prior to this, the prosecution sent investigators to Thailand, and after Kim and others boarded a flight to Korea and one hour had passed, they executed the arrest warrant. The decision to request an arrest warrant must be made within 48 hours after the execution of the arrest warrant.

Kim is under investigation by the Suwon District Prosecutors' Office, which is examining suspicious financial flows within the Ssangbangwool Group. He is suspected of involvement and directing the false disclosure of Ssangbangwool's CB convertible bond transactions from 2018 to 2019 (charges include embezzlement, breach of trust, and violations of the Capital Markets Act). He is also accused of illegally transferring $6.4 million (approximately 7.2 billion KRW at the time) to China and then sending it to North Korea during 2018-2019 (charges of remittance to North Korea). Kim is also noted as a key figure in the allegations regarding Lee Jae-myung’s payment of legal fees. The prosecution believes that as the actual owner of Ssangbangwool, he instructed the company to cover 230 million KRW in legal fees for attorney Lee Tae-hyung during Lee’s trial for election law violations in 2018-2019.